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IP World

The telecommunications industry has loudly debated the economics of access—how to compete with cable operators, how far to carry fiber into businesses and neighbourhoods, and how to spread maintenance costs among users. Yet an equally weighty problem is receiving less analysis: how can telcos make the most of the historic shift from legacy networks to platforms based on Internet Protocol (IP)?

Telecom companies have been investing into infrastructure for several years transforming their network platforms from analog to digital systems. Telco operators incumbents are spending billions to adopt the IP technology with an idea of being profitable in serving their customers. Even so, most telcos not only feel pressured by the threat that their competitors will undercut their profitability with competing offerings but also are tempted by the opportunity to deliver a new array of services. Consequently, they are undertaking the IP transformation in the hope they will find the payoff somewhere along the way.

Rethinking the operating model

Using IP technologies the telco company has got a chance to rethink operations, make processes more efficient, and empower customers to tailor their own services. This customer focus means that the transformation can’t be the view of the CIO and IP technology unit. It demands involvement from customer service, sales, marketing, and other units and functions that need a say in how new services are sold and maintained.

Reduce complexity through end-to-end redesign

Historically, telcos have created products and services by deploying new technologies while leaving the old ones in place—an accretive process that makes the infrastructure more complex. Some telcos have created modular building blocks within their networks and production systems, making it easier to add and subtract new technologies.

Telco companies should begin to reduce their infrastructure and technology complexity by redesigning their processes, building in more automation and self-service, simplifying and consolidating IT platforms, and standardizing and rationalizing the products and features in their portfolios. The payoff will be a model that can reduce the cost of support and maintenance while facilitating the adoption of better customer lifetime management applications and of combined customer relationship management (CRM) and billing solutions. The new model can also speed time to market for new products and cut IT spending, leading directly to improved earnings.

Promote customer self-service

Customers, whose expectations have been shaped by other services that moved to the Internet (travel, banking, media), generally expect more control over their telco services when it moves to an IP platform. Telcos should embrace this opportunity to offer self-service online - allowing customers to review performance reports, check account status and bills, and report and monitor trouble tickets—all without having to get in touch with the call center.

Why to migrate to IP Products?

Cost savings are an important part of the value proposition—a part that is relatively easy to communicate to customers in all industries. By migrating from legacy platforms to IP-based solutions, customers can save up to 10 percent on the total cost of network ownership while gaining 30 percent more bandwidth. For Retail customers, however, 10% from the monthly bill is sometimes not worth even to call the Provider's Call Centre. The most important reason for the change should be the aded value of related services like Internet access, email, WEB hosting and others in direction to multimedia.

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